Avon
August 12, 2024
NEW YORK, Aug. 12, 2024 --
Avon Products, Inc., the U.S.-based non-operating holding company for the Avon beauty brand, filed voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to address its debt and legacy talc liabilities. The company has not sold products in the U.S. since it divested its North America business in 2016, but it still holds the brand's non-U.S. operating companies.
Avon's operating businesses outside the U.S. are not part of the case and are continuing as usual. Parent Natura &Co, which acquired Avon in 2020 and is its largest creditor, agreed to buy the equity of Avon's non-U.S. operations for 125 million dollars in a credit bid, subject to a court-supervised auction. Natura &Co also committed up to 43 million dollars in debtor-in-possession financing to fund the company during the sale process.
Natura &Co said its strategic review of a possible separation of Avon and Natura, announced in February 2024, is suspended until the Chapter 11 process is complete. The Avon Company, the U.S. Avon brand owned by LG Household and Health Care, is not affiliated with the debtor and is not part of the proceedings.